[thephyber]

I've long read about the following still being a problem (post-2009):

- CDOs (although a new generation of them have a new name/initialism)

- Frank/Dodd was partially rolled back

- The definition of bank size-classes was changed to reduce the regulatory burden over most regional banks that were previously more regulated

- No significant adverse event happened after Standard & Poors was identified as having significantly inaccurate ratings on CDO / mortgage bond

- moral hazard all over the financial sector, multiplied by large QE rounds

- shadow inventory of housing (not sure if this was sold off or if banks still hold lots of houses off the market)

- lots of private unicorns have opted not to try to go IPO, despite Wall Street records over the past few years

(edit: I converted the indented list to individual paragraphs)

But given these assumptions, are the US financial markets really that healthy? It still feels like we have a few asset bubbles, especially in the assets which QE propped up.

[yodon]

As a head's up a huge fraction of HN's readers read on mobile where code formatting like you used here makes posts unreadable.

[thephyber]

Yes, I've heard, but there isn't a suitable replacement format that I've seen for a bulleted list.

The formatting doc[1] is very short and doesn't include a list.

[1] https://news.ycombinator.com/formatdoc

[gridlockd]

It's not a bubble, it's price inflation. Assets are fairly priced with a looming collapse of the dollar value in mind.

[thephyber]

I'm not sure I agree with the terms you are using.

I get the difference between what is usually called a "bubble" and what is usually called "inflation", but I don't think you can accurately identify a bubble until it has already burst and you do it in retrospect.

"Fairly priced" is strange because every transaction is "fairly priced" in the moment (given the knowledge at the time), but may turn out to be "unfairly priced" if in retrospect it appears to be fraudulent.

[gridlockd]

It's a bubble if investors are irrationally speculating on the future value of the assets, relative to the dollar.

It's price inflation if investors are rationally speculating on the future value of the dollar, relative to the assets.

It is hard to conceive that the dollar is not going to depreciate as a result of monetary policy, or that the monetary policy is going to change. I consider the latter scenario to be more plausible.

> "Fairly priced" is strange because every transaction is "fairly priced" in the moment

To be clear, I'm saying that the price represents fair value.

[linuxftw]

The stock market used to be a way to raise capital for profitable business ideas. Now, private equity has enough capital, they don't need to raise money from the general public. We've been shutout of the good money, we only get to pick up the crumbs, if we're lucky. The only businesses that IPO now are sure money-losers.

[thephyber]

> We've been shutout of the good money, we only get to pick up the crumbs

Yeah, I think my biggest complaint of the private market / public market is the accessibility gap and the face that the actual valuation of a private company is extremely skewed because there is such little public info for due diligence and the company is so rarely re-evaluated.